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Establishing a business presence in Southeast Asia necessitates the paramount step of opening a bank account in China, crucial for both foreign individuals and corporate entities. As the world's second-largest economy, China presents unparalleled opportunities, serving as a hub for international trade and investment. However, comprehending China's banking system, business environment, and legal framework requires an understanding not only of regulations but also of cultural nuances.

This article delves into the intricacies of China's banking system, offering guidance for expatriates seeking financial stability or foreign companies engaged in international trade. Navigating China's banking landscape, with its unique blend of tradition and innovation, demands a nuanced approach. Join us in unravelling the complexities, gaining a multifaceted understanding of the Chinese banking system, and acquiring the ability to navigate it with confidence and precision.

Foreigners are increasingly drawn to this business centre. If you plan to move to or conduct business in China, opening a bank account becomes a pivotal step, and this article provides detailed insights into the key requirements and steps involved, facilitating a smoother process.

What Attracts Investors and Entrepreneurs to Open a Bank Account in China?

As mentioned earlier, numerous foreign investors and multinational companies express interest in registering a business in China. The primary reasons include:

  • Economic Growth: China's status as the world's second-largest economy, with a GDP comprising approximately 14.3% of the global GDP.
  • Exports: China's position as the largest exporter, owing to a unique blend of low production costs and advanced technology.
  • Imports: Being the largest importer of various goods and services, including raw materials, machinery, electronics, and components.
  • Regulation: The heavily regulated Chinese economy may pose restrictions on free competition in certain industries.
  • Innovation: China's focus on technological innovation, particularly in artificial intelligence, electric cars, and quantum computing.
  • The Chinese economy's unique characteristics, evolving towards a more flexible, market-based structure, encourage entrepreneurship and efficient resource utilization.

How is Banking Regulated in China?

China's banking regulation comprises a complex system overseen by several regulatory bodies, covering key aspects such as licensing, capital adequacy, and currency control. The government's control over the financial sector imposes restrictions on foreign banks and investors, necessitating a clear understanding of these regulations and legal advice to ensure compliance.

The regulatory authorities include:

  • The People's Bank: Setting monetary policy and ensuring overall financial system stability.
  • The Banking and Insurance Regulatory Commission: Overseeing licensing, operation, and financial condition of banks, ensuring compliance with prudential standards.
  • The China Securities Regulatory Commission (CSRC): Supervising certain financial institutions.
  • Prominent banks like Bank of China, Construction Bank Corporation, and Industrial and Commercial Bank play vital roles globally. Recent government reforms aim to enhance the competitiveness of the Chinese banking system.

Banking Regulations and Compliance

Navigating China's banking landscape involves understanding the regulatory framework governing financial transactions. This section examines key aspects of banking regulation and compliance, emphasizing stringent measures for stability and transparency.

Foreign Exchange Control:

China's robust foreign exchange controls significantly impact international banking activities. Strict regulation of foreign exchange flow aims to maintain economic stability and safeguard national interests. Key considerations include restrictions on currency conversion, controls on capital account transactions, and their impact on international banking operations.

Compliance and Reporting:

Compliance with China's banking regulations and reporting requirements is both a legal obligation and crucial for maintaining financial stability. Key considerations include:

  • AML/KYC: Strict enforcement of Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, screening foreign individuals and companies during the account opening process.
  • Financial Transaction Reporting: Meticulous reporting of certain financial transactions, especially those involving large sums or international movements, to regulatory authorities for transparency and legitimacy.
  • Tax Compliance: Understanding and fulfilling tax obligations, including reporting income earned in China and abroad.
  • Penalties for Non-Compliance: Severe penalties, including fines and restrictions on financial activities, for failure to comply with banking regulations. Legal consequences can impact reputation and operations.

Navigating these compliance and reporting requirements demands meticulous attention and a commitment to transparency. Seeking professional advice and staying updated on regulatory changes are critical for smooth and compliant banking operations in China.

What to Look for When Choosing a Bank?

Choosing the right bank in China is a strategic decision contingent on individual or business needs. Key considerations for both individuals and businesses include evaluating services offered, language support, fees and charges, customer service, corporate account options, online banking services, currency exchange services, support for foreign businesses, and relationship management. Consulting with legal or financial advisors is advisable for an informed decision.

In which bank to open an account?


OCBC is a leading bank in Asia with a strong presence in China, offering a comprehensive range of banking services.

  • Various types of bank accounts.
  • Credit cards for use in China and abroad.
  • Investment services.
  • Financial management, including wealth management, tax planning and inheritance services.
  • Online banking.

OCBC allows a Hong Kong company to open an account in China, especially if there is a non-resident director. The business of the company must be trading, and the documents required may include contracts with partners and confirmation of relevant activities.

  • It is possible to open an account with OCBC in China for a foreign company, the main requirement being that the company must have a PRC resident director.

Bank of East Asia

BEA is the third-largest bank in China, with a significant domestic and international presence.

  • Opening and management of bank accounts.
  • Account transactions.
  • Loans and credits.
  • Investment products.
  • Asset management.
  • Foreign exchange transactions.
  • BEA provides personal and corporate banking services.

Risk management and various other financial services are offered.

Preference for Corporate Account Opening:

Many entrepreneurs prefer to open a corporate account with BEA in China due to its high level of service and English language interface.

Standard Chartered Bank

Established in 1859, Standard Chartered Bank is considered one of the most reliable banks, offering a range of services related to bank accounts, online banking, credit and debit lines, investment products, insurance services, etc.

Thorough vetting process:

Known for its thorough customer vetting process, potential account holders should be aware of the bank's minimum balance requirements.


HSBC Bank operates in China and is officially registered as HSBC Bank (China) Company Limited and is one of the largest and most well-known banks in the country.

  • Offers Global Payment System services for CNY interbank transfers with a unique BIC/SWIFT code.
  • Account Transactions.
  • Lending products.
  • Investment products.
  • Wealth Management.
  • Financial Planning.
  • Companies often register in Hong Kong and use an HSBC business account to operate in China.

Both OCBC and BEA may have specific requirements and minimum balance criteria.

Global operations:

HSBC's global presence and ability to conduct business in China with a Hong Kong-registered company makes it the preferred choice for some.


Both Standard Chartered and HSBC are recognized for their reliability and long-standing presence.

Be sure to check each bank's specific terms and conditions and account opening requirements. Consultation with legal or financial advisors can provide tailored insights based on specific business needs.

Account opening process

Opening a bank account in China is a structured process that can be completed through a personal visit or an online application, depending on the account holder's preferences and circumstances. In this section, we'll look at the options available and provide a detailed step-by-step guide to make the account opening process easier.

Opening an account in person

In China, many banks require individuals, especially those opening corporate accounts, to visit the bank in person. This is a traditional approach that allows you to interact personally with bank representatives.

Personal visits may be required to provide original documents, to facilitate the verification process and to resolve any specific issues that may arise during the application process.

Open an account online

In China, several banks now offer online account opening services. This option is particularly convenient for people who prefer a streamlined and digital process.

Opening an account online usually involves submitting scanned copies of required documents, filling out application forms via the bank's official website or mobile application, and communicating virtually with bank representatives.

Step-by-step process

Step 1

Gather the necessary documents

  • Gather the necessary documents, including your passport, visa or residence permit, proof of address and any additional documents required by your chosen bank. Ensure that all documents are notarized, legalized or translated into Chinese if necessary.
Step 2

Make an appointment (if necessary)

  • If you decide to visit in person, contact the bank of your choice to schedule an appointment. This will ensure that a representative is available to assist you and reduce waiting times.
Step 3

Visit the bank (for an in-person opening)

  • Complete any additional forms provided by the bank.
  • Submit the required documents for verification.
Step 4

Apply online (for online opening)

  • Visit the official website or download the mobile application of your chosen bank.
  • Create an account and follow the instructions to start the online application process.
  • Upload scanned copies of required documents.
Step 5

Verification process

  • Whether in person or online, the bank will initiate a verification process to confirm the authenticity of the documents submitted. This may include checking your identification documents, visa status and any other relevant information.
Step 6

Obtain account details

  • Upon successful verification, the bank will provide you with your account details, including account number and related information.
  • If you are opening an online account in a Chinese bank, this information may be sent electronically through secure channels.
Step 7

Activate your account

  • Follow any additional bank instructions to activate your account. This may include an initial deposit or other special requirements.

Following these steps will ensure a smooth account opening process, whether in person or online. It is critical to be aware of any specific requirements of your chosen bank and to seek assistance from bank representatives if necessary. Furthermore, keep up to date with any updates or changes to your account management process to ensure a smooth banking experience.

Types of Bank Accounts in China for Foreigners and Foreign Companies

Type of Account


For Individuals:

RMB Savings Account

Basic savings account denominated in Chinese Renminbi (RMB) for personal savings and daily banking.

Foreign Currency Account

Allows foreigners to open accounts in foreign currencies in China (e.g., USD, EUR) for managing foreign income.

Fixed Deposit Account

Time deposit accounts offer higher interest rates than regular savings accounts.

Multi-Currency Account

Offered by some international banks, allows individuals to hold multiple foreign currencies in one account. Convenient for travellers and international business.

For Business (Foreign Companies):

Corporate RMB Account

Required for foreign companies operating in China to conduct transactions in local currency. Available to companies with a valid business licence and a registered presence in China.

Foreign Currency Corporate Account

For foreign companies to manage international trade and foreign exchange transactions

Differences between accounts in China for foreigners

Non-resident accounts and offshore accounts in China are used to store and manage finances. However, there are some important differences between the two types of accounts:

  • Offshore accounts exist in countries known for their favourable tax policies, low-income taxes and confidentiality of banking information. These accounts are often used for tax planning, tax avoidance and to maintain confidentiality. Non-resident accounts are created for individuals or companies that are not resident in the country where the account is held. These accounts can hold currencies and carry out financial transactions as long as all tax requirements are met.
  • Offshore accounts are usually created to obtain tax benefits, while non-resident accounts are created to improve access to international financial transactions.
  • One of the main differences between an OSA and an NRA is that the former is typically restricted, in that the funds held in the account can exclusively be used for transactions outside China.

Despite the differences between the two types of account, both can be used as part of tax planning and to manage finances in other countries. It is advisable to consult professionals and carefully consider all tax requirements before opening a non-resident company account in China.

Tips and considerations for opening a bank account in China

  • Familiarize yourself with the fee structures associated with the chosen bank account. Different banks may have varying fees for maintenance, transactions, and international transfers.
  • Plan transactions strategically to minimize costs. Consolidate multiple transactions into a single operation to reduce overall fees.
  • Inquire about fee waivers or discounts based on factors like account balances, transaction volumes, or relationships with the bank.
  • Explore cost-effective alternatives such as online banking, mobile apps, and self-service options to reduce transaction fees.


Opening a bank account in China is a consequential step requiring careful consideration and adherence to regulatory requirements. This guide has illuminated the intricate process, emphasizing the importance of compliance and strategic decision-making. Seeking legal and financial advice is paramount due to the nuances of China's banking system and evolving regulations. By staying informed, vigilant, and proactive, individuals and businesses can navigate the complexities with confidence, fostering a stable and trusted financial environment in China.

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